Lost in Translation: Consumers Difficulty in Estimating Expiration Time With Redemption Caps

Using redemption caps (e.g., good for the first 40 callers) is increasing in promotions, especially online. However, it is not clear how consumers interpret how much time they actually have to redeem with this type of restrictions, especially when the target market size is unknown. We propose that consumers anchor their estimates of market size and demand (i.e., response rate) from the stated redemption cap. The authors find that consumers, while believing demand grows with the cap size, overestimate how much time they have to redeem the offer and are more likely to lose out on the opportunity.



Citation:

Richard Hanna, Scott Swain, and S. Adam Brasel (2007) ,"Lost in Translation: Consumers Difficulty in Estimating Expiration Time With Redemption Caps", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 470-472.

Authors

Richard Hanna, Boston College, USA
Scott Swain, Boston University, USA
S. Adam Brasel, Boston College, USA



Volume

NA - Advances in Consumer Research Volume 34 | 2007



Share Proceeding

Featured papers

See More

Featured

When Does Being Paid an Hourly Wage Make it Difficult to Be a Happy Volunteer?

Sanford E. DeVoe, University of California Los Angeles, USA
Jieun Pai, University of California Los Angeles, USA

Read More

Featured

Why Do People Who Have More Enjoy Horror More?

Haiyang Yang, Johns Hopkins University
Kuangjie Zhang, Nanyang Technological University, Singapore

Read More

Featured

Portals of Transformation In Consumer Experiences

Linda L Price, University of Oregon, USA
Basil Arnould Price, York University, UK

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.